Open banking, innovation and cloud technology are not synonymous but are very closely entwined. As open banking is about data, it creates an opportunity for banks to become data-driven companies and to deliver customised services in context for customers. To know more about open banking and cloud technologies, Rashmi Sharma of Elets News Network (ENN), interacted with Satyajit Kanekar, Co-Founder, Mobileware Technologies.
Could you tell us about Mobileware Technologies and its USP?
Mobileware Technologies focuses on developing scalable solutions to simplify business payments. With our innovation-centric approach, we offer UPI interoperability and scalable payment solutions for businesses that need to make digital payments. We have also made a digital difference to a plethora of banks that include, Nationalised Banks, Private Banks, Co-operative Banks, Urban & Rural banks, NBFCs, and other financial service providers. Our association with the National Payment Corporation of India facilitates us to build effective tech solutions for our Banking, Financial Services, and Insurance customers.
At Mobileware, we also respond with a compliant and secure product to every new digital channel introduced by NPCI. At the same time, we continue leveraging our mobility base to develop consumer services SDKs that talk to banking systems for payments and transfers.
Mobileware Technologies has created TransXT, a plug-and-play open Banking API technology platform that enables businesses to go live instantly. What is API Banking and what are its benefits?
The API traditionally pertains to the tech interface between software programs. In simple terms, this interfacing ability facilitates a third-party application that synchronises and connects to a bank’s tools and services. This helps both banks and Fintech to reinforce their complementary specialities and offerings beyond their individual limitations.
By integrating API, banks can digitise their services and serve a better customer experience through internet banking, mobile banking and fintech apps. It is simple, instant, secure, and scalable. Therefore digital banking enabled by APIs is becoming a lot more popular after the pandemic and this adaptation will bring a massive shift in the banking industry. It securely elevates the process of transacting money across banks, businesses, fintech, start-ups, and consumers.
Open Banking has the potential to accelerate innovation and empower consumers. What is your perspective on this?
Today, businesses and customers want smart financial solutions. As a tool, open banking facilitates customers in taking control of their finances. One of the many goals of open banking is to improve the financial standing and the quality of life for customers. Open banking fintechs can help customers take charge of their money, save, and overcome monetary setbacks. This is done by providing customised solutions through analysis of financial data. By focusing on stabilising finances during inflationary periods, open banking leads to customer-focused financial empowerment.
Innovation is another important aspect. The way we think of banks is evolving continuously. Open banking has accelerated the transformation of the financial services industry with its products and services. It is a win-win situation for everybody involved. With capabilities that extend beyond the traditional payments system, it is set to enable financial inclusion in the country.
Open banking and cloud technology are very closely entwined. What are your thoughts on the cloud solutions needed in this regard?
Open banking, innovation and cloud technology are not synonymous but are very closely entwined. As open banking is about data, it creates an opportunity for banks to become data-driven companies and to deliver customised services in context for customers. Some banks have already seized this opportunity, but to succeed, banks must ingest, store and share a greater volume of data for a wider range of purposes. This enables the need to adopt strategic cloud solutions. It facilitates near real-time processing, which is necessary to align banking services with the dynamics of the real world. Furthermore, it offers low-cost access to an operational test environment with secure sandboxes based on industry best practice methods.
The cloud empowers a bank to capture an unprecedented volume of customer data, analyse it, and deliver bespoke services where they are wanted.
India has registered phenomenal growth in digital payments. How do you stay safe from cyber threats during digital transactions? What should be the holistic cyber security framework in the BFSI sector today?
India has been a cash-driven economy for decades, and the shift to digital has not been easy. Lack of digital literacy and awareness maximised the risk levels. According to US-based cyber security firm Norton, India witnessed over 18 million cyber attacks and threats, with an average of nearly 200,000 threats every day, in the first three months of 2022. To avoid being in such situations, consumers need to adopt the best practices like using personal devices or networks during online transactions, keeping a check on financial statements, regularly changing passwords, using two-factor authentication for transactions, updating antivirus software, and many more.
To take a proactive stance on cybersecurity, Indian banks need to start operationalising threat intelligence to improve the readiness of their security operations against different threats. This means security teams need to leverage threat intelligence to prioritise and execute threat detection, response, and management processes to ensure a greater focus on the most critical threats.
Tell us about your plans.
At Mobileware, our plan is to enter international markets, which can be made possible by aligning with NIPL International and Bharat Bill Payment System (BBPS) in regions such as the Middle East, Europe, and Africa. Our next step includes partnering with local open banks, banking as a service (BaaS), and API banking platforms. The reach will be leveraged by yet another partnership with MasterCard and VISA.
All this helps us in creating a one-stop shop for all banking APIs under one roof for fintech, corporates, and other companies.